IOSR Journal of Business and Management (IOSR-JBM)

e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 17, Issue 1.Ver. III (Jan. 2015), PP 42-44
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An Analytical Study on the Influence of Performance Appraisal

on Pharma Sales Force Job Satisfaction
Dr. Muralikrishna, Professor, Principal1 Ch. Kameswari, Assoc. Professor,2
Samatha P.G.College,Vishakapatnam
TKR College of eng & tech, Hyd.

I.

Introduction

Definition and Meaning Of Performance Appraisal

According to Wayne Cascio,
"Performance appraisal is the systematic description of an employee's job relevant strengths and weaknesses."
Performance appraisal may also be defined as a structured and formal interaction between a
subordinate and supervisor, that usually takes the form of a periodic interview (annual or semiannual), in which
the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and
strengths as well as opportunities for improvement and skills development.
History Of Performance Appraisal
The practice of appraisal is a very ancient. In the scale of historical things, it might well lay claim to
being the world's second oldest profession. The human inclination to judge can create serious motivational,
ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of
ensuring that the judgments made will be lawful, fair, defensible and accurate.
Performance appraisal systems began as simple methods of income justification. That is, appraisal was
used to decide whether the salary or wage of an individual employee was justified or not. In the 1950s in United
States, the potential usefulness of appraisal as tool formotivation and development was gradually recognized.
The general model of performance appraisal, as it is known today, began from that time.
Problem Statement
Performance evaluation system is applied in the organizations to identify the skilled and best
performers employee of the organization to increase their salary and other benefits to be satisfied from the job,
but sometimes the most of the employees are not satisfied from the performance evaluation and hence not from
the job. In this study the aim is to identify the significant relationship of performance evaluation and job
satisfaction.
Objectives Of The Study
a) To find out the impact of different factors influencing employees performance evaluation process in
Pharmaceutical industry.
b) To analyze the effect of performance evaluation on employees job satisfaction.

II.

Research Methodology

A sample of 40 sales personnel working in Telangana region and from selected pharmaceutical
companies was considered for the study. A questionnaire with 10 questions was designed which aims at
collecting data regarding training facilities, learning facilities, job satisfaction, communication transparency,
feedback mechanism, self-appraisal system e.t.c,
Simple percentages method was used to analyze the collected data.

III.

Literature Review

Performance appraisals are one of the most important requirements for successful business and human
resource policy. Rewarding and promoting effective performance in organizations, as well as identifying
ineffective performers for developmental programs or other personnel actions are essential to effective to
human resource management. The ability to conduct performance appraisals relies on the ability to assess an
employees performance in a fair and accurate manner. Evaluating employee performance is a difficult task.
Once the supervisor understands the nature of the job and the sources of information, the information needs to
be collected in a systematic way, provided as feedback, and integrated into the organizations performance
management process for use in making compensation, job placement, and training decisions and assignments.

DOI: 10.9790/487X-17134244

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An Analytical Study On The Influence Of Performance Appraisal On Pharma

Benefits of productive performance appraisals
1. Employee learns of his or her own strengths in addition to weaknesses.
2. New goals and objectives are agreed upon.
3. Work teams may be restructured for maximum efficiency.
4. Employee renews his or her interest in being a part of the organization now and in the future.
5. Training needs are identified. - Supervisor becomes more comfortable in reviewing the performance of
employees
6. Employees feel that they are taken seriously as individuals and that the supervisor is truly concerned about
their needs and goals. (Randi, Toler, Sachs, 1992).
Components Of Performance Evaluation
Performance evaluation systems contain two basic systems:
a. Evaluation system
b. Feedback system
a. Evaluation System
The main aim of the evaluation system is to identify the performance gap (if any). This gap is the
shortfall that occurs when performance does not meet the standard set by the organization as acceptable.
b. Feedback System
The main aim of the feedback system is to inform the employee about the quality of his or her
performance. However, the information flow is not exclusively one way. The appraisers also receive feedback
from the employee about job problems, etc.
Relationship between Job satisfaction and performance evaluation
Attempting to understand the nature of job satisfaction and its effects on work performance is not easy.
For at least 50 years industrial/organizational psychologists have been wrestling with the question of the
relationship between job satisfaction and job performance. Researchers have put a considerable amount of effort
into attempts to demonstrate that the two are positively
related in a particular fashion that a happy worker is a good worker. Although this sounds like a very
appealing idea, the results of empirical literature are too mixed to support the hypothesis that job satisfaction
leads to better performance or even that there is a reliable positive correlation between these two variables. On
the other hand some researchers argue that the results are equally inconclusive with respect to the hypothesis
that there is no such relationship.
As a result of this ambiguity, this relationship continues to stimulate research and reexamination of
previous attempts. This paper strives to describe the relation of job satisfaction and performance, keeping in
mind the value this relation has for organizations.
However, a variety of studies suggest that research has found only a limited relationship between satisfaction
and work output and offer scant comfort to those seeking to confirm that a satisfied worker is also a productive
one.

IV.

Analysis And Interpretation

To understand the relationship between job satisfaction and performance appraisal the following
qualitative measures were observed
1. Training facilities and job performance:Rates
Strongly agree
Agree
Disagree
Strongly disagree

2.

Percentages
48
40
10
2

Performance review and open communication :Rates

Strongly agree
Agree
Disagree
Strongly disagree

DOI: 10.9790/487X-17134244

Percentages
26
48
22
4

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An Analytical Study On The Influence Of Performance Appraisal On Pharma

3.

Performance appraisal and job satisfaction :Rates

Strongly agree
Agree
Disagree
Strongly disagree

4.

Percentages
26
55
17
2

Self appraisal and employee morale :Rates

Strongly agree
Agree
Disagree
Strongly disagree

5.

Percentages
34
50
14
2

Appraisal system and learning:Rates

Strongly agree
Agree
Disagree
Strongly disagree

6.

Percentages
21
49
23
7

Performance feedback and employee satisfaction :Rates

Strongly agree
Agree
Disagree
Strongly disagree

V.

Percentages
26
42
28
4

Conclusion

From the above interpretation it can be observed that there is significant relationship between
performance appraisal and job satisfaction. This study demonstrates that more than 50% of pharmaceutical sales
force agree that there is a positive relationship between performance appraisal tools and employee satisfaction.

References
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[2].
[3].
[4].

Performance management and appraisal systems T.V.RAO- 2004

Molvi, Abdul Qadir, College of Business Management, Karachi Pakistan Business Review, April 2012, v. 14, iss. 1, pp. 132-64
Uchgaonkar, Mohan Vasant-- A study of performance appraisal systems and practices followed in selected organizations with
reference to supervisory / managerial level submitted to university of pune in 2008 for the award of Ph.D.
Pettijohn, Charles E.; Pettijohn, Linda S.; d' Amico, Michael-- Human Resource Development Quarterly, Summer 2001, v. 12, iss.
2, pp. 127

DOI: 10.9790/487X-17134244

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